Post Office Recurring Deposit: Small savings schemes run by the post office are not only popular for the interest rates provided by the government, but investing in them is also completely risk-free. The interest rates for these schemes are revised every three months.
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Post Office Recurring Deposit: Everyone plans to save some of their income and invest it in a way that not only reduces risk but also provides strong returns. The government, through post offices, runs small savings schemes for people of all ages. These are quite popular due to their safe investments and excellent returns. One such government scheme is the Post Office Recurring Deposit Scheme (RD Scheme), which can prove helpful in accumulating a substantial corpus through regular investments.
Excellent Interest and Zero Risk
If you are looking for a risk-free investment option, the Post Office Recurring Deposit Scheme (PO RD Scheme) can be an excellent choice. No matter how much you invest, the government itself guarantees security, meaning there’s no chance of losing your money. Furthermore, the government offers excellent interest rates on this scheme. An account can be opened in Recurring Deposit with an initial investment of just Rs 100, while there is no limit on maximum investment.
Calculation to Raise ₹25 Lakh
Now let’s explain how you can raise a substantial corpus of ₹25 lakh through regular investments in this government scheme. The calculation is quite simple. Using the Post Office RD Calculator, you’ll need to invest ₹15,000 per month to reach this amount. By investing this amount every month in an RD scheme, your total deposit will be ₹10,70,492 by the 5-year maturity period, and you’ll earn ₹1,70,492 solely from interest.
If you extend this monthly investment for the next five years, i.e., investing ₹15,000 per month for 10 years, your interest income will be ₹7,52,822. Adding this interest income will result in a total corpus of ₹25,62,822.
This scheme also offers a loan facility.
While the Post Office Recurring Deposit Scheme is effective in raising substantial funds, it also offers several other benefits. You can open an account under this scheme at any nearby Post Office. Among other benefits, investors are allowed to close their accounts even before the stipulated five-year maturity period. Furthermore, loans are also available on investments made under the PO RD Scheme. After operating the account for just one year, you can take out 50% of the deposit amount as a loan, with interest at a rate of only 2%.
Read More: Income Tax Department is sending emails to these taxpayers claiming deductions, here’s why.
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